Jamie Dimon and other Wall Street titans say the US economy is strong for now, but warn about the future

JPMorgan Chase CEO Jamie Dimon on Friday called out positives in the economy including resilient consumers but cautioned of dangers lurking that could still spark a downturn.

Asked by CNN if the inflation cooldown has made him more optimistic about avoiding a recession, Dimon acknowledged considerable uncertainty.

“I don’t know if it’s going to lead to a soft landing, a mild recession or a hard recession,” Dimon said during a call with journalists.

The JPMorgan Chase CEO cited “tailwinds” in the economy, including the strength of consumer spending amid fiscal and monetary stimulus.

“Those are receding over time,” Dimon said.

Headwinds, according to Dimon, include inflation, high US government debt, high interest rates, the Federal Reserve’s efforts to shrink its balance sheet and the war in Ukraine. He noted the war has been going on for 500 days and could still “get worse.”

Jeremy Barnum, JPMorgan’s chief financial officer, similarly expressed uncertainty over whether the Fed can achieve a soft landing for the US economy.

“Your guess is as good as ours,” Barnum told reporters, adding that there has been “a lot of euphoria about immaculate disinflation” in recent days but it’s too early to say. 

The JPMorgan Chase CFO was more confident about the state of the banking crisis, which has eased since the JPMorgan takeover of First Republic in early May.

“It seems like we are through the worst of it,” Barnum said.